RNR Shareholder/Stockholder Letter Transcript:
2023
Annual Report
RenaissanceRe Holdings Ltd.
Contents
Financial Highlights . . . . . . 1
Letter to Shareholders . . . . 2
Message from the Chair . .
10
Comments on
Regulation G . . . . . . . . .
12
Form 10-K . . . . . . . . . .
15
Board of Directors and
Leadership Team . . Last Page
Office Locations,
Financial and Investor
Information . . . . . . . . .
OUR
PURPOSE
OUR
VISION
OUR
MISSION
is to protect
communities
and enable
prosperity.
is to be
the best
underwriter.
is to match
desirable risk
with efficient
capital.
41%
78%
59%
Return on Average
Common Equity
Combined Ratio
Change in Book Value per
Common Share plus Change in
Accumulated Dividends
IBC
Financial Highlights
Financial Highlights for RenaissanceRe Holdings Ltd. and Subsidiaries
2023
(In thousands of United States dollars, except per share amounts and percentages)
Gross premiums written
Net income (loss) available (attributable) to RenaissanceRe
common shareholders
Operating income (loss) available (attributable) to RenaissanceRe
common shareholders(1)
Total assets
Total shareholders equity attributable to RenaissanceRe
2022
2021
$ 8,862,366
$ 2,525,757
$ 9,213,540
$ (1,096,578)
$ 7,833,798
(73,421)
$ 1,824,910
$ 49,007,105
$ 9,454,958
$ 36,552,878
$ 5,325,274
$ 33,959,502
$ 6,624,281
52.27
(1.57)
37.54
7.47
1.67
165.20
141.87
168.39
1.52
104.65
97.15
122.15
1.48
132.17
124.61
148.13
1.44
322,791
78,935
Per common share amounts
Net income (loss) available (attributable) to RenaissanceRe common
shareholders per common share diluted
Operating income (loss) available (attributable) to RenaissanceRe
common shareholders per common share - diluted(1)
Book value per common share
Tangible book value per common share(1)
Tangible book value per common share plus accumulated dividends(1)
Dividends per common share
(25.50)
Ratios
(1)
Return on average common equity
Operating return on average common equity(1)
40.5
29.3
(22.0)
6.4
Net claims and claim expense ratio
Underwriting expense ratio
Combined ratio
47.8
30.1
77.9
68.5
29.2
97.7
(1.1)
1.3
74.6
27.5
102.1
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Financial Strength Ratings
A.M. Best(1)
S&P(2)
Moody s(3)
Fitch(4)
Renaissance Reinsurance Ltd.
DaVinci Reinsurance Ltd.
Fontana Reinsurance Ltd.
Fontana Reinsurance U.S. Ltd.
Renaissance Reinsurance of Europe Unlimited Company
Renaissance Reinsurance U.S. Inc.
RenaissanceRe Europe AG
RenaissanceRe Specialty U.S. Ltd.
Top Layer Reinsurance Ltd.
Vermeer Reinsurance Ltd.
Validus Reinsurance Ltd.
Validus Reinsurance (Switzerland) Ltd
A+
A
A
A
A+
A+
A+
A+
A+
A
A
A
A+
A+
A+
A+
A+
A+
AA
A+
A+
A1
A3
A1
RenaissanceRe Syndicate 1458
Lloyd s Overall Market Rating
A
AA-
AA-
Very Strong
RenaissanceRe ERM Score
Very Strong
Ratings as of March 15, 2024
(1)
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(2)
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(3)
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(4)
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RenaissanceRe Holdings Ltd.
2023 Annual Report
1
Capital Management
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deploy capital into our business. We had ample opportunity
to do so throughout 2023, both through acquisitions and
organic growth.
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our acquisition of Validus from AIG in a transaction that
was immediately accretive to shareholders across our key
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and adding the talented Validus team to our organization.
We continue to be impressed by their professionalism,
strong work ethic and deep industry knowledge, and
we are undoubtedly a stronger company thanks to their
contributions.
To acquire Validus, we paid approximately $3 billion for $2.1
billion of unlevered shareholders equity. For a $900 million
premium over book value, we acquired approximately $3.5
billion of well-underwritten premium, as well as a $4.5 billion
investment portfolio. The Validus underwriting portfolio
consists of a high-quality mix of property, casualty, specialty
and credit lines that closely mirrors our own. It is appropriate
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have already underwritten. As such, they will retain 95% of
any reserve development, either favorable or adverse.
In anticipation of the Validus transaction, we raised
approximately $2.1 billion through public security issuances.
This generated net proceeds of about $1.35 billion from the
issuance of common shares and about $740 million from the
issuance of 10-year 5.750% senior notes. In addition, AIG
received common shares with a value of about $250 million at
signing. We funded the remainder of the purchase price, about
$640 million, through deployment of existing excess capital.
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acquire Validus, property catastrophe reinsurance business
was disfavored. But we had conviction in our vision of
being the best underwriter, and recognized the competitive
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could bring to us in a favorable reinsurance market.
Conversely, if we had chosen to grow organically in one
area of our portfolio, such as property catastrophe top
layers where demand was strongest at January 1, it would
have unbalanced our portfolio and diluted returns on equity.
RenaissanceRe Holdings Ltd.
2023 Annual Report
For this reason, our overriding objective heading into the
recent January 1 renewal was to retain RenaissanceRe s
legacy lines while renewing the Validus business we
chose to keep, and to do so without disrupting favorable
market conditions. I am pleased to report that we were
overwhelmingly successful in this endeavor. This is in part
because there is substantial value in incumbency in the
reinsurance industry, which provided us strong client and
broker support for becoming a larger partner.
Our success in renewing the combined portfolio was
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from increased access to our highly rated, well capitalized
balance sheets. Brokers had access to an expanded and
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execution and a market leading view of risk. Our capital
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further below.
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portfolio is a great example of our ability to execute
decisively when market conditions are favorable. We have
built the industry s leading platform to accept reinsurance
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enduring value for our shareholders.
Lastly, we paid common dividends of $75 million in 2023,
and recently increased our quarterly dividend for the 29th
consecutive year.
Three Drivers of Profit
Consistent with prior years, I would like to discuss our Three
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Underwriting Income
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$1.6 billion, with $1.4 billion in our Property segment and
$208 million in our Casualty and Specialty segment. This
represents a substantial improvement from 2022, when we
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are especially pleased to have delivered this result in an
active catastrophe environment in which industry losses
once again exceeded $100 billion (at $120 billion in 2023
vs $132 billion in 2022).
3
3/26/2024 Letter Continued (Full PDF)